City to take ownership of downtown SIST building Nov. 1

Long list of creditors complicated sale process
By: 
Tim Ryan
Reporter

SHAWANO — The city’s acquisition of two blighted downtown properties from the Samanta Roy Institute of Science and Technology should be finalized by the first of next month now that the city’s legal counsel has sorted through the problem of multiple third-party debtors that were complicating the sale.

The Shawano Redevelopment Authority reached an agreement with SIST in April to purchase the buildings at 214-216 S. Main St. for $36,000, a price considered fair market value.

The RDA, a semi-independent panel tasked with addressing vacant and blighted buildings in the city, filed a condemnation petition in March against the long-vacant SIST properties at 214-216 S. Main St. and 143-145 S. Main St., citing building inspections that raised health and safety concerns.

The matter had been slated for a condemnation hearing in court, but an agreement was ultimately reached that called for the city to purchase the buildings at 214-216 S. Main St. and let SIST keep the properties at 143-145 S. Main St. for the time being in hopes of eventually rehabilitating them.

That agreement was complicated, however, by a host of other entities that held liens on the property, either through loans or mortgages or some other financial investment, or were owed money by SIST.

That includes the Shawano County Treasurer’s Office, which is owed $905.74 in taxes.

Some creditors also changed over time. A debt owed to one of the banks was transferred to another bank and eventually to an investment fund.

Other debtors include Integrity Bank of Wausau, Southwest Guaranty LTD of Houston, Draeger Oil Co. of Antigo and MMG Financial Corp. of Ontario.

Also listed as creditors are two SIST subsidiaries and SIST itself in the person of Dr. Samanta Roy.

The total amount owed those entities was not available, but it will not change what the city is paying for the property.

It will be up a circuit court to decide how the proceeds are divvied up should the debtors decide to pursue legal action to reclaim a portion of the money.

Most of the hangup in closing the sale with SIST has been a matter of identifying creditors and notifying them, which has now been completed, according to City Administrator Eddie Sheppard.

“We think we’ve reached out to everyone,” he said.

The city this week filed an award of compensation in circuit court that provides $34,000 for the property at 214 S. Main St. and $2,000 for the property at 216 S. Main St. and lists those entities certified as having any financial interest in the properties.

“We intend to cut this check and give it to the clerk of court to hang on to,” Sheppard said. “We don’t really get involved in how they distribute the funds. That’s for the judge to decide.”

Sheppard said the city expects to take possession of the property on Nov. 1.

He said it hasn’t yet been determined what will happen to the property after that, though the building itself will come down.